The pensions landscape is undergoing significant change brought about by legislation, technology, and the economy. To meet retirement goals in this environment, schemes are beginning to look beyond traditional markets to the potential diversification benefits of private markets.
At BlackRock, we believe that private markets offer compelling attributes that advocate their inclusion in many institutional investor portfolios but acknowledge that they are not for everyone. Our paper focuses on the importance of understanding risk and strong portfolio construction practices because private market valuations are not immune to bouts of volatility and will go through benign and tough market environments.
In our latest paper, Helping Defined Contribution Schemes Go Private, we look to provide a framework to help schemes consider allocations to private markets with the default investment strategy.
We cover:
- What are private markets and what role do they play in DC today?
- Key considerations when allocating to private markets
- Case study of private markets' impact on a DC portfolio
- What's next?
This post was funded by Blackrock
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